Blackstone : Henderson Park Acquires Iconic Arizona Biltmore From Blackstone Real Estate for $705 Million

20 May 2024

Phoenix & New York - Henderson Park, the international private equity real estate firm announced today that it has completed the acquisition of the Arizona Biltmore resort in Phoenix, Arizona, from Blackstone Real Estate for $705 million.

The iconic 705-key, luxury, full-service hotel has recently undergone a substantial renovation with broad appeal to premier leisure, corporate and group guests, underpinned by growing demand in the submarket.

Originally opened in 1929, set on 39 acres of land and located in the heart of Phoenix a mere 15 minutes from Sky Harbor International Airport, the "Jewel of the Desert" resort boasts an impressive amenity offering including over 200,000 sq ft of meeting space; seven swimming pools; multiple food and beverage outlets; and a state-of-the-art 28,000 sq ft spa.

Pyramid Global Hospitality, a leading hotel management company, with whom Henderson Park previously acquired the La Quinta Resort in Palm Springs in 2021, will act as the firm's hotel manager for the Arizona Biltmore.

Morgan Stanley as lead, together with Deutsche Bank and J.P. Morgan, provided a $460 million commercial mortgage loan to finance the acquisition. The resort purchase was completed through funds managed by Henderson Park, including a commitment from Cincinnati-based Western & Southern Financial Group, Inc. and its real estate arm, Eagle Realty.

Nick Weber, CEO and Founder of Henderson Park, commented: "This transaction presents a rare and compelling opportunity to acquire a historic but newly refurbished hotel in one of the country's premier hospitality markets and to both immediately capitalize on accelerated performance and to further enhance the resort's offering into the future.

"We take the stewardship of the Arizona Biltmore very seriously and will work with our partners to position this iconic hotel for continued success. In Hilton we have a longstanding relationship across our global hospitality portfolio and this, in collaboration with our repeat operating and lending partners, supports our conviction in the opportunity ahead for a special investment."

Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said: "As owners of the Arizona Biltmore, we brought our hospitality expertise and experience to enrich and preserve this historic property. We're pleased to reach this agreement on behalf of our investors and position the asset for long-term success."

Henderson Park was advised by Jones Day.

Eastdil Secured served as Blackstone's financial advisor and Simpson Thacher & Bartlett LLP served as Blackstone's legal counsel.

- ENDS -

For further information

FTI Consulting, for Henderson Park
Richard Sunderland / Ellie Sweeney / Andrew Davis
[phone]
[e-mail]

Blackstone
Jeffrey Kauth
[phone]
[e-mail]

NOTES TO EDITORS:

About Henderson Park
Henderson Park is a leading international private equity real estate fund manager. Since its formation in 2016, the firm has invested over $14 billion in building a portfolio of flagship real estate assets, with a presence in major cities and capitals in the United States, UK, France, Germany, Greece, Ireland, Italy, Poland, Portugal and Spain. Henderson Park seeks high quality assets in prime locations where it can identify the potential for unlocking or creating value through asset management and sustainability improvements, or by taking on and working in complex situations. The company's current portfolio is diversified across various sectors such as multifamily, hospitality, student housing, logistics, office and retail, including several real estate development projects. Henderson Park strives to work and build long-term strategic relationships with the best local partners.

Henderson Park is a signatory of the UN PRI.

Visit www.hendersonpark.com for more information.

About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone's real estate business was founded in 1991 and has US $339 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, residential, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone's Core+ business invests in substantially stabilized real estate assets globally, through both institutional strategies and strategies tailored for income-focused individual investors including Blackstone Real Estate Income Trust, Inc. (BREIT), a U.S. non-listed REIT, and Blackstone's European yield-oriented strategy. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).